Time and material – on-account invoicing with end-balancing

This type of contract is a variety of the common Time and material – standard contract. Long-term, fairly large projects use this type of contract, where the supplier has requested payment for part of the total budget before and during project work, but where the final consumption is to be invoiced upon project completion.

One example is a time and material contract with an agreed budget of EUR 13,500 for which the customer accepts an advance payment of EUR 6,700, an additional EUR 1,300 half-way through the project and the remaining amount upon completion. As the contract is based on time and material, the remaining amount is the difference between the cost of the work performed and the EUR 8,000 paid, which is then invoiced before delivering the project.

In TimeLog
In TimeLog, the On-account invoicing with end-balancing contract covers this scenario. The contract type is a mix between time and material and fixed price. A payment plan of on-account payments is created for ongoing invoicing. Project hours and costs do not appear for invoicing while the contract is active, but they are available for booking as revenue.

When the contract ends, TimeLog automatically creates a negative payment on the contract to offset invoiced on-account payments and then releases the hours and costs of the contract to the final invoicing.